Why are they paying out to ineligible people? That is just madness

My nostrils are over-powered with the smell of dead fish and I'm this close to throwing up! David Chaplin points out exactly what's wrong with a guarantee scheme here http://bit.ly/9bCsFu.

 This is ridiculous. Why should the taxpayer have to pay for people and entities not covered in the guarantee scheme? 

I am supposed to pay for Leaky homes, Retail deposit guarantee scheme and now even for those that are not covered in the guarantee schemes. I am pissed off  really bad.....

Gareth 

This is so so so wrong on every level . Why should business risk losses be paid for by Taxpayers ? Its the most iniquitous unjust event in modern economic history . Frankly , I will emigrate to Australia with my wife and three kids and go and pay tax there . I have never had spare money to invest and struggle to save , pay a fortune in tax , and struggle with my mortgage . Now some rich bu@@er is going to be paid out when he did not need the money to feed or house himself in the first place . My family have been avid National Party supporters for generations , but now we will vote for Labour . John Key deserves to lose the next election .

Wasn't the whole Government Guarantee scheme a Labour ( M Cullen ) scheme back in 2008 ???

"Repaying all depositors of all guaranteed companies that default will save taxpayers from having to pay ongoing interest that otherwise would have accrued as thousands of claims were assessed, processed and paid"

I'm not happy about paying out otherwise inelligible people, either, but reading the quote above, it looks like keeping it quick and simple will save money, in that SCF et al is going to take ages to sort, during which time interest, admin, etc, costs all mount up.

Alan Hubbard has a lot to answer for....

Fat reward for SCF speculators.

http://tvnz.co.nz/business-news/fat-reward-south-canterbury-speculators-3751303

This calls for an investigation

madness

Aussie is looking really good right now

Really Angry Bloke, I feel your pain. I wonder if there are any trustees of companies still standing and guaranteed till Oct 12, but with a few issues, whose eyes lit up at this news?

You must be joking,  is this any way to be running a Government?

Is this an indication of the respect this outfit has for the rule of law and taxpayers money?

So what if there is an interest component if the pay out is delayed, they are going to be borrowing the money anyway, there may be a difference in the rate that's all.

These guys are so stupid they'll be sending our money to Nigerian scammers next.

It does bespeak a kind of glazed-eye desperation.

You have to realise they will look after their kind, and their 'core' voter types.

Which inevitably will be close to home.

This is only a symptom of their bigger problem, remember. Irrespective of which players are on or off the board, this is what you get under a sinking lid.

Pity some folk didn't listen to Donella Meadows et al, circa '72.

It’s obvious really, a pile of the current Nats in parliament esp those of the finance disposition, have their money tied up in this debacle. Rather than cop a personal financial hit they have hit the common NZ taxpayer. Get your money/income out of NZ fast.

Let's accept there are some undoubtly political motives behind this ...lots of Nat voters in the Mainland.  BUT ..with the economy slowing again, housing market nearly ground to a halt, business confidence weak ..etc etc ... is this not a brilliant opportunity for govt to treat the GG as a convenient 'stimulus' package with all the taxpayer anger being directed at the finance companies/'greedy investors'??

Greg C, story on this going up about now. Bill English doesn't expect a downgrade...

Not at all impressed with this bailout.

They made their bed - they should also lie in their bed.

Have never had any of my funds in 'finance' companies - I have always seen them as Ponzi-esque - yet I am helping out along with all other taxpayers, paying for all the plonkers that have and thought it was a good thing.

As for blaming Key, English Cullen whoever - a waste of time.

The problem is not with the current politicians - it is with all politicians chasing votes and wanting to be seen to be doing something and acting like they are in control. The forces at work here are beyond mere politicians ability to sort out..

A plague on all their houses.

Grumpy grumpy

@BMR789

So we followed Aussies into this scheme as 'we had to', otherwise all our money would have flooded across the Tasman, or so we were told. And just how much have the Australian had to ay out under this necessary Guarantee, versus what we have ended up paying?!

This all goes back to the initial government guarantee as some have noted. It goes back to the core of how the financial system is structured, namely around a vote of confidence that my piece of paper will be accepted as a means of payment.

This is a big can of worms. One wiggles straight out and that is the way SCf were able to advertise "govt g'teed" investments at 8%. I deliberately didn't touch anything to do with SCF on the basis that t might be underwritten by the taxpayer. That's where the moral hazard really kicked in. 

When you have a system that runs off 5-10% margin you better hope prices keep going up. Many commentators have been talking about the systemic issues on this site for well over a couple of years yet it never reaches the sunlight. 

The simple fact is that your deposits are merely unsecured liabilities or perhaps at best secured against the assets on which new debt has been advanced. 

Don't expect the government to work this one whilst their heads are buried up to their armpits!

So - with my money out of the NZSX - into SCF and coming back into my bank account - where to next??

Back into shares?  Advice welcomed. 

I would have thought that any 'investor' in the Sounth canty ponzi scheme would be over the moon just to get their principal back! Forget about the 8 to 10% interest! I have my limited amount of money in a real bank earning derisible interest, and now my taxes are being freely spent by those in Wellington to shore up their suppotrers in the Mainland.... and maybe some of their own trusts?

The whole mess smells.

All over bar the shouting.

The simple fact is that this country needs first and foremost is an honest and trustworthy leadership to take us into the future. (Yeah Right).

The past reality is that we were all screwed royally by morons for the past decades.

As well as new leadership, likewise, we need a new world, first class....system for

banking and finance,

Insurance and Pension,

Sustainable Energy and renewable and sustainable infrastructure for the coming Energy crisis and its resulting problems, 

Also Industry and agriculture and other employment, not based on Ponzi schemes and so-called perceived 'Capital Gains' via INFLATION of assets and screwing the TAXPAYER and rorting the investor.

What we did not want is a bloated State induced Social Welfare explosion, created by  those same morons to benefit themselves via Socialising of Debt..

That that is not going to be remedied is a given, I am so very much afraid to report.

Same deckchairs, same Titanic, same crew.

Lifebelts for sale, write care of your FRIENDLY GOVERNMENT FINANCE MINISTER and LEADER, enclosing your life savings, payable to BEARER.

Now extrapolate that to each COUNTRY in the WORLD and we may just have a future.

When the WORLD wakes up.

Wakey Wakey.

Time to sue the government i think. Bailing out yet another private company and it's investors is surely against the rules around justifying tax collection. This is selective 'welfare' for specialists groups

$400 each? Chump change! Well worth it to wind-up SCF.

And much better to have a controlled disposal of impaired assets than a fire-sale. Who knows - if the economy recovers in 2-3 years - then ther might even be a windfall profit in it.

That happened with the BNZ bailout didn't it?

;-)

And that's why we are set to become the Financial hub  of the South Pacific .

Because the taxpayer unwittingly underwrites every sweet deal....

And the same question arises to every sticky situation .....In whose interest..?

Mom and Pop ......? my arse

P.S. Bernard don't forget to add the new debt to each taxpayer Household debt ratio plus projected interest as they (for the most part) are in hock to the eyeballs or just flat broke.